LAHORE: The Lahore Chamber of Commerce and Industry has feared that export-oriented businesses would be squeezed if stuck-up Income Tax/Sales Tax refund claims are not released immediately by the Federal Board of Revenue (FBR).
In a statement issued here Tuesday, the LCCI president Ijaz A. Mumtaz said that in the present scenario when economy needs resources for expansion, squeezing of business would be harmful.
Ijaz A. Mumtaz said the Federal Board of Revenue is hampering growth of the most productive sectors by denying the exporters and manufacturers their right of refund of Sales Tax and Income Tax.
He said that the delay in release of huge funds that runs into billions has triggered serious liquidity crunch for the exporters and manufacturers that might lead to closure of several industrial units.
The LCCI President said the authorities concerned should take realistic view of the matter and allow the refunds of sales tax and Income Tax to exporters and Manufacturers at the earliest, who were facing severe hardships.
He said that the process to get refunds is so lengthy and cumbersome that sometimes takes months for a manufacturer or an exporter to get his own money refunded.
He said that exporters are already facing financial crunch due to devaluation of Euro while delay in refund of sales tax and income tax claims is adding fuel to the fire.
He said that the businessmen were bearing huge financial cost on their own hard earned stuck-up money, therefore, the FBR Chairman should look into the matter and ensure early release of Sales Tax and Income Tax refunds.
He said that the businessmen have now started feeling the pinch as the businesses were already in deep troubles and experiencing toughest times because of multiple internal and external challenges including an acute shortage of electricity and gas. And now the delay in release of their own money was adding to their miseries.
He said that it was a matter of concern that despite clear instructions of Federal Finance Minister Ishaq Dar to release Sales Tax and Income Tax refunds at the earliest, FBR machinery was using delaying tactics and creating hurdles for the business doing people.
He urged the Federal Finance Minister to take notice of the situation and issue directions to the FBR authorities to expedite stuck-up Sales Tax and Income Tax refund claims.